Question: please answer QUESTION 4 [s MARKS] Table 5 Consumption (C) Income (Y) 130 150 (a) (b) (Cl (d) Assume the consumption function takes the form

please answer

QUESTION 4 [s MARKS] Table 5 Consumption (C) Income (Y) 130 150 (a) (b) (Cl (d) Assume the consumption function takes the form C = Ca + (c)Y, then the consumption function based on the information in Table 5 is: (i) C = 25 + 0.3Y (ii} C = 25 + 0.7V (iii) C = 0.7Y (1 mark) (Write the correct answer) Calculate the marginal propensity to consume? (1 mark) Calculate the marginal propensity to save? (1 mark) Calculate the income multiplier. (2 marks}

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

please answer Question 4 (4 marks) Table 1.1: Production Possibilities for Brushes and Combs Number of Opportunity Cost (Foregone combi) Referring to table 1.1. the opportunity cost of producing 17...

please answer 4,5,6! 4. 5. Use principle +5 to explain why investors should not buy "hot stocks." Use principle 45 to explain why investors should invest in low-expense index funds, rather than...

GIVE ALL THE CORRRECT ANSSERS Project Management in Practice Managing Costs at Massachusetts' Neighborhood Health Plan In just a 2-year period, Medicaid reduced its rate of reimbursement by 20...

Part one. Explain. Everything else constant, the international trade effect indicates that aggregate expenditures in the domestic economy fall when: A) domestic prices fall relative to foreign...

please answer question 1,2,3,4,5 DA2 Risk For Students(2) (1) QSearch Sheet AutoSave FF Review View DComments Home Insert Draw Page Layout Formulas Data Share _ 4 AY Insert vA A General Calibri...

can you please help me solve this assignment quesions? ASSIGNMENT BAcc 2016 LETTER SEMESTER (2) [FINANCIAL ACCOUNTING 3B] [AFE3872] DUE DATES Assignment 1 Assignment 2 Assignments Resubmissions...

The following graph plots three planned expenditure lines for a hypothetical economy, each associated with a different price level. The line labeled PE120 corresponds to a price level of 120; the...

0.02 0.01 O- -O y = P(d) d (mi) 100 200 300 400 i. How long did Julia's trip take? ii. Write a mathematical equation involving the function P representing the following sentence. Your answer may...

I need your help with this: Can you please quote from the attached chapters / resource if possible? Corporations often use different costs of capital for different operating divisions. Using an...

Questions. Eco 450 2 NATIONAL INCOME ACCOUNTING In Swedish: Nationalrakenskaper Problem 2.1: Fill in all numbers where there now are question marks (?) in the table. Private consumption (C) Privat...

Perform a suitable change of variable to show that the integral defining the gamma function can be written as 2P4-1-r for a >0 r(a) = 2-. -1 dz 2a-1

1- List the advantages of using damper bars in synchronous machines? 2- Why synchronous generator used in steam turbine power station has rotor of small diameter and high length other than that used...

To assess the relative value of stocks using the P / E ratio model, an investor should: Question 9 Answer a . Look for the highest P / E ratio to ensure the best investment. b . Compare the P / E...

1-Compare and contrast proactive public relations activities and crisis management. Research a company who underwent a media crisis and explain what happened. How did they respond to the media? Do...

5. List at least three personal roles that you want to perform better. What can you imagine doing to perform better in these three personal roles. Use tomorrow to improve what you think can be...

10. Imagine that the goal has been reached. Now think about the path you have to take to reach the goal. How did you influence other people to achieve your goal? Imagine walking along the path you...

2. How do I perform this role?